home – Corona Virus – some basic suggestions on negotiating with property sellers, to get the best deal on a home, during the COVID-19 pandemic
RERA Licensed Real Estate Agent in Hyderabad
Owing to the Corona virus pandemic, buying and selling of property has almost come to a standstill, despite technological advancements. Virtual tours have replaced site visits in the present scenario, while meetings with developers are now happening over video-conference and home loan approvals are happening over the telephone calls. However, one thing that buyers still need to do, is negotiate. At present, sellers are willing to give discounts and offers, to clear their existing stock and generate cash flow to survive the lock down. Buyers can make the most of this opportunity, by following some basic tips on negotiating with the seller.
Before entering into any negotiation phase, talk to other sellers and property agents about the prevalent market rate in the area before the pandemic started and how the property prices have moved in the past five years. This can help you to assess how much return you can expect in the next few years, if you invest now. Also, comparing the offered price with prices during the pre -pandemic period. Negotiate for a home during the Corona Virus pandemic will help you understand if the market has been adversely impacted. You could expect up to 20% discount on the base price, if the market you are investing in has a number of vacant units. If there are very limited options left, you may not be able to bargain at all.
You can also compare and view other projects and units in the same or similar neighbourhoods, to decide if there are better offers, view, amenities and facilities available at a lower or same price range. If there are other projects in the same locality that are lying vacant and are litigation free, this is your chance to pick the best one. However, do not compromise on the construction quality and delivery timeline, just because of the cost benefit. Ensure that the project you are investing in and the broker you are dealing with, is registered with the Real Estate Regulatory Authority.
